Scribd
Upload
64 views

Business Economics - Neil Harris - Summary Chapter 4

This document provides an overview of key marketing concepts including the marketing concept, target markets, market segmentation, positioning, and the marketing mix. It explains that marketing involves identifying customer needs and wants and developing a strategy to meet corporate objectives through a combination of product, price, promotion, and place (distribution). The marketing mix must be tailored to the target market and reinforce the company's positioning relative to competitors. Important factors of the marketing mix for products include quality, packaging, pricing strategy in response to demand and competitors, and promotional communications to reach customers. For services, additional elements of the marketing mix are physical evidence, personnel, and service processes.

Uploaded by

Nabila Huwaida
Copyright
© © All Rights Reserved
We take content rights seriously. If you suspect this is your content, claim it here.
Available Formats
Download as DOCX, PDF, TXT or read online on Scribd
64 views

Business Economics - Neil Harris - Summary Chapter 4

This document provides an overview of key marketing concepts including the marketing concept, target markets, market segmentation, positioning, and the marketing mix. It explains that marketing involves identifying customer needs and wants and developing a strategy to meet corporate objectives through a combination of product, price, promotion, and place (distribution). The marketing mix must be tailored to the target market and reinforce the company's positioning relative to competitors. Important factors of the marketing mix for products include quality, packaging, pricing strategy in response to demand and competitors, and promotional communications to reach customers. For services, additional elements of the marketing mix are physical evidence, personnel, and service processes.

Uploaded by

Nabila Huwaida
Copyright
© © All Rights Reserved
We take content rights seriously. If you suspect this is your content, claim it here.
Available Formats
Download as DOCX, PDF, TXT or read online on Scribd
You are on page 1/ 2

Assignment 3

Business Economics -- Neil Harris

Chapter 4: Marketing the product (Summary)

All about marketing: the overview

Marketing may be described as a profit oriented business philosophy which puts the customer at
the centre of all the business’s activities. This is known as the marketing concept. It is concerned
with identifying who the potential customers are (the markets) and what their needs and wants
are (the demand). Therefore, marketing is a functional activity which converts consumer needs
into specific corporate activities to meet the company’s objectives. This activity focuses on
consumer satisfaction first and foremost.

But, marketing is beyond just identifying consumer needs and market opportunities, it is also
about the use of a range of marketing tools, known as the marketing mix, in a selected and
researched target market – in other words developing a marketing strategy. Within its marketing
strategy, a business can influence its marketing mix to achieve its business objectives.

Important terms on marketing

● A target market: one where businesses which enter it will develop a marketing mix which
specifically matches the demands and preferences of the group of potential buyers who
constitute it.
● Undifferentiated market approach: when a business adopts an undifferentiated market
approach it assumes that all consumers in the market have broadly similar tastes and
wants
● Market segmentation: this involves a business distinguishing groups of customers with
similar characteristics and product demands.
● Targeting strategies: the process of making decisions about which of the market segments
the business has identified it should focus on for its sales and marketing activities.
● Positioning: creating a differentiated image and position for the product in the minds of
its target consumers, compared with competitors’ products.
The marketing mix

The marketing mix is a combination of variables used to reinforce the positioning through
products, pricing, promotion (branding), and place (distribution channels).

For product, there are a few factors to consider: the range and type of products sold by a
business; how they are differentiated from rival products by branding; their quality; how they are
packaged and labelled; what sort of warranty or after-sales service is provided, and how well
they sell, considering their life cycle.

Businesses also need to determine the right price for their products. Price will then determine
how much of the product a business sells and, therefore, the revenue it earns, since revenue
equals the price of the good multiplied by the quantity of it sold. To sell more, a business may
have to, over time, lower its price, as market demand declines. A business will also need to
respond to price changes adopted by its competitors to remain competitive in the market.

Promotion relates to marketing communications. This is the process of the business


communicating information to the target audience of consumers which promotes the exchange of
goods, services and ideas.

Place covers a wide range of issues such as distribution channels, levels of stock held, delivery of
goods to customers etc. It means that a business must ensure that its products are in the right
place and at the right time for consumers, and at the right price.

If a business if operating in providing services, there are three extra Ps to add to the mix, such as:
physical evidence ( anything that impacts on the customer’s senses), people (the personnel who
work for the business and their contribution to the marketing mix), and processes (such issues as
information flows, ease of payment, lack of queuing).

You might also like